Tennessee may reject stimulus aid for jobless

[Freddie Stubbs]

Source: THE TENNESSEAN

Bredesen balks at conditions tied to federal package, long-term costs

Tennessee could reject a portion of the $787 billion economic stimulus package out of concerns that it would force the state to raise taxes on businesses in the future.
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At the National Governors Association meetings in Washington, D.C., Gov. Phil Bredesen said this week that he might turn down relief for unemployed workers worth an estimated $143 million because of conditions placed on the money by Congress.

The stimulus package would also raise unemployment benefits by $25 a week for all workers, but in addition, lawmakers want states to expand the pool of people who can apply for benefits. That would put more pressure on an unemployment trust fund that is already trying to stave off insolvency.

"We are evaluating this piece of money, whether it makes sense for us to take it," Bredesen said in an interview Monday with the Chattanooga Times Free Press. "We're in the position of going back to our legislature this year for changes in our tax structure just to keep our fund whole, and taking it to a new level may be too much of a lift for the legislature this spring."

Read more: http://www.tennessean.com/article/20090225/NEWS02/902250416

[Hello_Kitty]

1. I thought it was an all-or-nothing deal.

You couldn't reject part of the stimulus for your state.

[newfie11]

7. That's what I thought too. N/T

[PhD]

13. No, governors can refuse certain parts

Several governors are angry about the strings attached to some of the money. Namely, the feds require the states to offer services even after the federal government no longer pays the bill, or an "unfunded mandate." However, the Dems in Congress anticipated governors would have this reaction. If the governor refuses, there's a provision for state legislatures to vote on accepting the money anyway.

In defense of the governors, I'm hoping there's a "loophole." Maybe the legislatures voting to accept the funds means the money is available in the short term but the governor's refusal means the states won't be saddled with the extra costs of maintaining these services after the federal funding expires in 2011. I don't know if this is the case or not.

I say this as a frequent victim of unfunded mandates. My organization is on the West Coast but our parent agency on the East Coast constantly requires us to do work without providing any funds to pay for it. This mandatory work requires us to raise our hourly rates to a higher level than the East Coast counterparts. Our customers see this and say, "hey, I should have the East Coast guys run my project since they're cheaper!" It's an insidious cycle.

[tekisui]

2. I bet he takes it.

[bluestateguy]

3. Bredesen will get a phone call from Rahm Emanuel, who will straighten him out

Trust me.

[TBF]

4. Other southern governors are spouting the same crap -

Texas for sure and I also heard South Carolina.

Here is the cite for one of the latest articles re Texas: http://www.dallasnews.com/sharedcontent/dws/news/politics/local/stories/022109dnmetobamamayors.34e4c972.html

Quote from article:

"WASHINGTON – President Barack Obama singled out Texas today as a state that could lose out under the huge stimulus plan because its governor may reject some funds.

Obama made the comments in a session with dozens of U.S. mayors, among them leaders from Dallas, Houston and Laredo.

"The president … joked about the fact that we need transit dollars in Houston, although the governor of Texas has said that maybe Texas won’t take money from the stimulus bill," Houston Mayor Bill White recounted afterward."

[happygoluckytoyou]

5. BREDESEN should vote for it.... OR he will BE one of the unemployed after the next election

[Freddie Stubbs]

6. He cannot run for reelection, he is term-limited

[rox63]

8. Isn't Bredesen supposedly a Dem?

What sort of repuke BS is he trying to pull?

[Freddie Stubbs]

9. TN Democrats have nominted him for Governor three times

They seem to think that he is a Democrat.

[endarkenment]

10. OMG the feds want Unemployment Insurance to cover more of the unemployed!

:wtf:

That is crazy shit.

[marshall]

11. If they can get along without it, why not give it to somebody else

Just because it's being offered doens't mean everyone has to take it. Any state that decides it doesn't need the stimulus means more stimulus for those states that are really in dire need like California.

[sarcasmo]

12. "Stupid is as Stupid does"